Critical structural adjustment for controlling China's coal demand

Coal consumption in China has been almost equal to the consumption of all other countries since 2011, and influenced not only global climate change but also domestic air pollution control, energy production and consumption revolution. Coal consumption is closely related to China's whole economy, and its cap control should be based on comprehensive understanding of different economic agents' interactions. Therefore, this study uses the input-output model to identify key relationships to be adjusted which have their significant direct and indirect effects on coal consumption. We find that fixed capital formation in construction having a significant indirect impact on coal consumption in all main coal-intensive sectors, and most of the important production relationships in a sector involve inputs of basic raw materials or fuel, such as building materials in construction. From the perspective of fine structure adjustment to control coal effectively, some non-basic inputs need massive restrictions, such as substantially reducing pesticide and fertilizer application in agriculture, and construction expansion should be limited to a rational growth through reducing short-lived buildings, constraining low-level redundant construction of roads and buildings, and minimizing the vacancy rate and incremental construction area. Moreover, export of coke, chemicals, and chemical products should be discouraged from the perspective of coal control, and urban households should consume daily chemical and pharmaceutical products more rationally.